Paramount Lodging Advisors announced the successful sale of Los Altos Hotel Associates LLC’s interest in the Residence Inn by Marriott to RLJ Lodging Trust for a purchase price of $70 million or $449,000 per room.
The hotel is located at 4460 El Camino Real in Los Altos, Calif. The hotel caters to extended stay travelers visiting nearby Palo Alto and Stanford University. The hotel’s location is proximate to a diverse base of demand generators that included education, hi-tech, research, and venture capital. Major corporate employers in close proximity include Hewlett Packard, VMware, SAP, Google, Intuit, Stanford University and Hospital, and LinkedIn, as well as many others. In addition, Palo Alto and Menlo Park are home to one of the largest concentrations of Venture Capital companies in California, and the United States.
The three-story, 156-room, Residence Inn hotel opened in 2000. The hotel recently completed an extensive renovation that included upgrades to the public areas and all guestrooms. The hotel offers newly renovated studio, one-bedroom, and two-bedroom suites. Each guestroom provides guests with separate living and sleeping areas, and a fully equipped kitchen. Other special amenities two telephone lines with voice mail, a well-lit desk with ergonomic chair, sport court, swimming pool, and secure underground parking.
Scott Griemsmann, senior managing director of the Western U.S. represented the owners in the transaction. “This is a fantastic sale for the owners and a great acquisition for RLJ Lodging Trust. I truly believe it was a win-win for everyone involved in the transaction. We were able to achieve one of the highest price per key sales for a Residence Inn in the country for the owners and RLJ has acquired an extremely profitable hotel located in a very high barrier to entry market that will be immediately accretive to their portfolio,” commented Griemsmann.